Business, 13.08.2021 01:00 michaellevingston46

Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city neighborhood (one of them must be chosen). Notice that the IRR for both alternatives is 27.19%. a. If MARR is 15â% perâ year, which alternative isâ better?
b. What is the IRR on the incremental cash flowâ [i. e., Îâ(YâXâ)]?
c. Which alternative should be chosen if MARR is 15% per year?
d. What is the simple payback period for eachâ alternative?
Alternative
EOY X Y
0 $105,000 $105,000
1 $50,000 $0
2 $51,000 $0
3 $70,194 $215,894
IRR 27.16% 27.16%
e. Which alternative would youâ recommend?
a. The PW of the alternative X is â$.
b. The IRR on the incremental cash flow is %.
c. The PW of the alternative X is $.
d. The simple payback for the alternative X is years.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 11:30

Which of the following statements about cash basis accounting is true? a. it is more complicated than accrual basis accounting. b. the irs allows all types of corporations to use it. c. it follows gaap standards. d. it ensures the company always knows how much cash flow it has.

Answers: 2

Answer

Business, 22.06.2019 12:50

Afirm’s production function is represented by q(m,r) = 4m 3/4r1/3, where q denotes output, m raw materials, and r robots. the firm is currently using 6 units of raw materials and 12 robots. according to the mrts, in order to maintain its output level the firm would need to give up 2 robots if it adds 9 units of raw materials. (a) true (b) false

Answers: 3

Answer

Business, 22.06.2019 19:00

James is an employee in the widget inspection department of xyz systems, a government contractor. james was part of a 3-person inspection team that found a particular batch of widgets did not meet the exacting requirements of the u.s. government. in order to meet the tight deadline and avoid penalties under the contract, james' boss demanded that the batch of widgets be sent in fulfillment of the government contract. when james found out, he went to the vice president of the company and reported the situation. james was demoted by his boss, and no longer works on government projects. james has a:

Answers: 3

Answer

Business, 23.06.2019 00:10

Many years ago, sprint telecommunications aired an advertisement intended to demonstrate the clarity of reception sprint customers could expect. the ad showed a rancher, who had used a different company, complaining that he had ordered 100 oxen from his supplier and instead received 100 dachshunds. the mix-up was probably due to the presence of in the communication process.

Answers: 3

Answer

You know the right answer?

Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city...

Questions